BFC Lobbying Succeeds with Four Wins
In advance of the Budget, on 2 March 2021, the British Furniture Confederation (BFC) made four key requests of the Chancellor of the Exchequer. The first, in December 2020, was to introduce a phased withdrawal of the Stamp Duty Holiday. The following three requests were then made in correspondence with the Government, in February 2021:
- Extend the Job Retention Scheme (furlough)
- Extend the VAT deferral period
- Extend the Business Rates holiday
The BFC argued that this support will help the UK furniture industry return to pre-pandemic levels of business, support 330,000 jobs in the sector and nearly £17 billion of annual consumer expenditure.
In the 2021 Budget, the Chancellor of the Exchequer responded positively to all four requests and the Government committed to the following:
- Temporary Stamp Duty Land Tax (SDLT) cut – The Government will extend the temporary increase in the residential SDLT Nil Rate Band to £500,000 in England and Northern Ireland until 30 June 2021. From 1 July 2021, the Nil Rate Band will reduce to £250,000 until 30 September 2021 before returning to £125,000 on 1 October 2021.
- Coronavirus Job Retention Scheme (CJRS) – The Government is extending the CJRS for a further five months from May until the end of September 2021. Employees will continue to receive 80% of their current salary for hours not worked. There will be no employer contributions beyond National Insurance contributions (NICs) and pensions required in April, May and June. From July, the Government will introduce an employer contribution towards the cost of unworked hours of 10% in July, 20% in August and 20% in September, as the economy reopens.
- VAT Deferral New Payment Scheme – Any business that took advantage of the original VAT deferral on VAT returns from 20 March through to the end of June 2020 will now be able to opt to use the VAT Deferral New Payment Scheme to pay that deferred VAT in up to eleven equal payments from March 2021, rather than one larger payment due by 31 March 2021, as originally announced.
- Business rates reliefs – The Government will continue to provide eligible retail, hospitality and leisure properties in England with 100% business rates relief from 1 April 2021 to 30 June 2021. This will be followed by 66% business rates relief for the period from 1 July 2021 to 31 March 2022, capped at £2 million per business for properties that were required to be closed on 5 January 2021, or £105,000 per business for other eligible properties.
Furniture Makers Webinar
On 24 February 2021, the Furniture Makers’ Company and the British Furniture Confederation (BFC) hosted a webinar titled ‘Engaging with Government’. This webinar was part of a wider series of events from the Furniture Makers’ called ‘Innovation in times of crisis’.
Mike Wood, MP, Chairman of the All-Party Parliamentary Furniture Industry Group (APPFIG), and Mark Eastwood, MP, Vice Chair of the APPFIG, were the special guests with the rest of the panel made up of representatives from the furniture industry trade associations: Nick Garratt (BFM), Jeremy Stein (BCFA), Jessica Alexander (NBF), and Lee Wade (FIRA). Jonathan Hindle, the Chairman of the BFC, hosted the discussion and the event received a range of questions from businesses who attended the webinar.
In the Webinar, panellists answered questions on engaging with Parliamentarians, issues facing the furniture industry and how best to support the industry as the country unlocks following COVID-19.
All-Party Parliamentary Furniture Industry Group Meetings
Prior to the Christmas break, on 9 December 2020, the APPFIG hosted a meeting to discuss the ongoing impact of COVID-19 on the furniture industry and a range of emerging problems the sector was facing including steel and foam shortages, and issues at ports.
Following the meeting, the MPs present took away a range of actions to follow up with Ministers by writing and asking questions. Additionally, the Group discussed the BFC’s request to extend the Stamp Duty Holiday.
On 2 March 2021, the APPFIG held its AGM, which was well attended by Members from across the House. At the meeting, the Group was reformed for another year with Mike Wood MP re-elected as Chair and Mark Eastwood MP, Rosie Cooper MP and Baroness Warsi were also re-elected as Vice-Chairs. In addition to these officers, the Group was pleased to elect two further Vice-Chairs: Paul Howell MP, Member of Parliament for Sedgefield, and Greg Smith MP, Member of Parliament for Buckingham.
The Group discussed a range of issues facing the industry, including the upcoming Budget. The Group reviewed the BFC’s four requests of Government and the Parliamentarians present expressed support for the BFC’s position.
New drive for MPs to join APPFIG
Following the Furniture Makers’ webinar and the most recent APPFIG meeting, the All-Party Group and BFC have committed to driving up the level of engagement with Parliamentarians. The BFC is aware that a large number of MPs have a significant furniture industry presence in their constituencies and are yet unaware of the importance of the industry. The BFC, working with the APPFIG, is planning to encourage both Members of Parliament to join the Group and to get local businesses engaging with their local MPs.
Letter to the Chancellor on the Stamp Duty Holiday
The BFC wrote to the Chancellor on 2 December 2020 outlining its request for a phased withdrawal of the stamp duty holiday. Subsequently, the APPFIG wrote to the chancellor highlighting similar concerns about the potential sudden removal of the Stamp Duty Holiday in March 2021. The BFC believed that a phased withdrawal that allowed consumers to slowly acclimatise to its reintroduction and avoid a cliff edge end would be far more beneficial for the industry.
Member Surveys
The BFC member trade associations (BFM, BCFA, NBF and FIRA) have, throughout the pandemic, been consulting their membership on a regular basis through the use of member surveys. Recent survey’s have helped to inform what priorities the BFC needs to have when speaking to Ministers, Members of Parliament and other key stakeholders. As BFC trade associations continue to consult their members on a regular basis it is important that businesses take the opportunity to raise issues that face their businesses.
Ongoing meetings with Paul Scully MP, Minister for Small Businesses, Consumers and Labour Markets
The BFC is continuing to engage with Paul Scully MP and his team in the Department for Business, Energy and Industrial Strategy, on a regular basis. In the calls, Jonathan Hindle continues to raise issues of concern to the furniture industry including the ongoing and developing shortages of foam and steel, the implications of the Brexit deal, and options for generating demand for British furniture and furnishings.
The BFC has also continued to liaise with Civil Servants in BEIS to ensure that the concerns and issues facing the industry are brought to the immediate attention of ministers.